Amazon to collect state sales taxes April 1st

So for all of our U.S. readers out there, if you are in a state that has sales tax you will find Amazon collecting it.

For a long time Amazon has resisted collecting sales taxes but in recent years it has been adding state by state to its list. From April 1st 2017 Amazon will be adding Hawaii, Idaho, Maine and New Mexico to its list.

The only states that Amazon will not collect from are Alaska, Delaware, Oregon, Montana and New Hampshire as these five states don’t have sales levies.

Why is Amazon collecting taxes now?

For a long time there has been an issue with states not being able to collect taxes from online purchases and according to The National Conference of State Legislatures, it estimates that states lost out on $23.3 billion in revenue in 2012 due to this inability.

With relation to the 1992 Supreme Court case, Quill Corp. v. North Dakota, retailers weren’t to collect sales taxes unless they had a physical presence in the same place where the buyer is located.

With companies like Amazon they fall under the rule by building data centres, warehouses and other facilities in multiple locations.